There are many great mysteries in crypto. Like, who is Satoshi Nakamoto? And just as puzzling for many is Cardano’s ADA price action. Cardano is one chain that demonstrates a complete lack of a positive correlation between development and price. It’s said that markets are irritational, and in crypto, they are not necessarily connected to the underlying technology. Perhaps in the longer term, this may change, and for Cardano, it deserves to change.
An analysis of ADA’s price action is not what is about to follow. For that, an entire book, but certainly a lengthy chapter could be written. But whether you’re in the space ‘for the tech’ or here the alpha, it would be wise to keep an eye on all that’s happening in Cardano world. Because there is a lot that’s happening.
Activities in Cardano
This September marked the 5th anniversary of Cardano and there have been a number of major announcements throughout 2022. Earlier in the year, the chain completed its Vasil hard fork, which resulted in faster transactions and decreased fees. Hydra, the proposed scaling solution, is coming soon.
In late November ‘Scot-fest’ was held in Edinburgh, Scotland, and shortly thereafter the ‘Cardano Summit 2022’ in Switzerland. Here we heard of the plan to formulate a decentralization index for crypto-currencies. And more exciting a privacy-focused side-chain called Midnight. This deploys Zero-Knowledge Proofs for privacy and also earns its own crypto by staking pools helping to secure the chain.
In addition, Emurgo (Cardano’s commercial arm) announced the first USD-Backed stable coin for the ecosystem; fully backed with reserves held in regulated U.S. financial institutions. This is the first of many financial products coming the chains way.
Arguably the most highly anticipated announcement has been Coti’s (an enterprise-grade fintech platform) launching of Djed an algorithmic stablecoin that will be the first of its kind. Though many of the Cardano community expressed concerns about this in the wake of Terra Luna’s collapse, Djed is technically less of an algorithmic stablecoin, and more like a debt protocol combined with a borrowing and lending protocol. Irrespective of definitions, Djed is a big development in unlocking the potential of Defi on Cardano.
And it should be noted that outside of these major developments, there are many more things in the works.
Conclusion
As prices are likely to go lower before we reach the actual bottom of this bear market, ADA’s price will not be immune to further decline. – Though it is worth recognizing that Cardano has been able to maintain its market dominance despite general market conditions. – Beyond that, it will be crucial that Cardano reaches its future milestones if it is to rebound strongly. So, keep an eye on Cardano. The increased utility should bring adoption. And with a longer-term horizon, that adoption will surely bring positive price growth. Probably!
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